Alan Knuckman's General Motors Options Trade

Speaking on Bloomberg Markets, Alan Knuckman of Bulls-Eye Option revealed his bullish options strategy in General Motors Company GM.

He said General Motors has a very low price to earnings ratio of 6 and that makes him believe the stock has a limited downside. He also sees some upside potential for the stock and he wants to buy the January 2019, 30 strike call for $8.75 to make a bullish bet. The trade breaks even at $38.75 or 2.22 percent above the current stock price.